Secondment, in general, refers to an assignment of employees to perform work temporarily for another company or entity, although the Indonesian law does not specifically regulate the concept of “secondment”. In practice, however, the arrangement is widely implemented through secondment agreements, internal assignment letters, or temporary deployment directives issued by the employer.
Dual Employment and the General Manpower Framework
Under Law No. 13 of 2003 on Manpower, as amended and most recently consolidated under Law No. 6 of 2023 (“Manpower Law”), there is no prohibition preventing an individual from holding more than one employment relationship. The only limitations comes from internal company rules or contractual clauses, such as exclusivity provisions or prohibitions on holding two different positions simultaneously.
This is regulated under Government Regulation No. 35 of 2021 (“PP 35/2021”), which governs fixed-term and indefinite-term employment agreements. Articles 2 and 4 of PP 35/2021 confirm that an employment relationship is established through a valid employment contract, whether in the form of:
- A fixed-term employment agreement (Perjanjian Kerja Waktu Tertentu / PKWT), or
- An indefinite-term employment agreement (Perjanjian Kerja Waktu Tidak Tertentu / PKWTT).
Further, PP 35/2021 contains no restriction on the number of employment agreements a worker may enter into, as long as the worker does not violate contractual obligations or applicable company regulations as explained above.
Employment Arrangements in the Maritime Sector
In the maritime sector, employment is governed by a specialized framework, which include:
- Minister of Transportation Regulation No. PM 59/2021 on Administration of Sea Transportation-Related Services, (“Permenhub PM.59/2021”) and
- Government Regulation No. 22 of 2022 on Placement and Protection of Migrant Seafarers (“PP No. 22/2022”).
According to PP No. 22/2022, every seafarers has to sign the Seafarer Employment Agreement (Perjanjian Kerja Laut or PKL) before being deployed. This is also regulated under Permenhub PM.59/2021 which states that a PKL may cover one voyage or multiple voyages and may be structured as either a fixed-term or indefinite-term contract. Importantly, the PKL must be executed before the deployment (among other requirements) to provide legal certainty and ensure adequate protection for the seafarers.
Does Signing a PKL Require Termination from the Original Employer?
If an employee is seconded or assigned to work as a ship crew member, the signing of a PKL is indeed mandatory. The PKL will govern the employment relationship in the context of maritime operations, whether on a fixed-term or indefinite-term basis.
However, this requirement does not automatically terminate the employee’s original employment relationship with their “initial” employer. A dual arrangement may legally coexist as long as:
- The employer’s internal rules or employment contract do not prohibit secondary employment;
- There is no conflict of interest between the two signed roles; and
- The employee’s rights under the original employment relationship are not violated
In many practical scenarios, the original employer treats the assignment as a secondment rather than a termination, and the employee returns to the original employer upon completion of their maritime assignment.
Disclaimer: This article provides a general overview of the regulatory landscape governing secondment arrangements, dual employment, and maritime-sector employment contracts under the Indonesian law. The discussion is intended for informational purposes only and should not be construed as formal legal advice. Circumstances may vary widely, and the interpretation or application of the laws referenced herein can differ depending on specific factual situations. Readers are strongly advised not to make decisions based solely on this material without obtaining professional legal counsel. Regulations may also change over time, and updated guidance may be required to ensure compliance. Should you require more tailored assistance or deeper analysis regarding the matters covered in this article, our team would be pleased to support you.